According to Torrent Group chairman Samir Mehta, with this acquisition, Torrent Power will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around two per cent of India’s total power consumption.
"This acquisition will significantly strengthen Torrent’s position as the leading power distribution
company in the country with a presence in 12 cities spread across 3 States and 1 Union Territory," said Mehta.
The distribution business in the UT of Dadra & Nagar Haveli and Daman & Diu is spread across a geographical area of 603 sq kms, ringing an annual revenue of approximately Rs 4500 crore with annual sales of 9000 million units from roughly 150,000 consumers.
Currently, Torrent Power carries a debt:equity ratio of 0.79 as on December 31, 2020 and net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) ratio of 2.18 for FY 2019-20. The company is open to participate in new opportunities coming up in the sector in renewable generation, transmission and privatisation of state-owned distribution circles.
In its licensed areas in Gujarat, Torrent Power has one of the lowest aggregate technical and commercial (AT&C) losses of 4.53 per cent.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.